DoD Awards $2.66B for CH-53K Helicopter Long Lead Items to Sikorsky

Contract Overview

Contract Amount: $2,657,312,746 ($2.7B)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2016-04-18

End Date: 2026-12-31

Contract Duration: 3,909 days

Daily Burn Rate: $679.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CH-53K LRIP LOT 1 LONG LEAD ITEMS

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $2.66 billion to SIKORSKY AIRCRAFT CORPORATION for work described as: CH-53K LRIP LOT 1 LONG LEAD ITEMS Key points: 1. Significant investment in heavy-lift helicopter modernization. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (2016-2026) with substantial value. 4. Aircraft manufacturing sector with high R&D and production costs.

Value Assessment

Rating: questionable

The contract value of $2.66 billion for long lead items is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or previous procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Sikorsky Aircraft Corporation. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to increased taxpayer expenditure compared to a competitively bid scenario.

Public Impact

Enhances U.S. military heavy-lift capabilities. Supports advanced aerospace manufacturing jobs in Connecticut. Potential for cost overruns due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Long duration

Positive Signals

Modernizes critical military asset
Supports domestic manufacturing

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing. Spending in this area is characterized by high R&D costs, complex supply chains, and significant government oversight.

Small Business Impact

The data does not indicate any specific provisions or subcontracts for small businesses in this award. Large sole-source contracts often have limited direct small business participation unless specifically mandated.

Oversight & Accountability

Given the sole-source nature and significant value, robust oversight from the Department of the Navy is crucial to ensure cost control and adherence to contract terms. Audits and performance monitoring are essential.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
High dollar value
Long contract duration
Potential for cost growth

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.66 billion to SIKORSKY AIRCRAFT CORPORATION. CH-53K LRIP LOT 1 LONG LEAD ITEMS

Who is the contractor on this award?

The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $2.66 billion.

What is the period of performance?

Start: 2016-04-18. End: 2026-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense would need to provide documentation demonstrating why competition was not feasible. Fair pricing in such cases relies heavily on cost analysis, historical data, and negotiation expertise by the contracting officers to mitigate the absence of market-driven price discovery.

What are the primary risks associated with this long-lead item procurement for the CH-53K program?

Key risks include potential cost overruns due to the lack of competitive pressure, schedule delays if supply chain issues arise for long-lead components, and technological obsolescence if the program extends significantly beyond the initial estimates. Ensuring robust program management and realistic budgeting is critical to mitigate these risks.

How does the investment in the CH-53K program align with current and future military operational needs?

The CH-53K is designed as a next-generation heavy-lift helicopter, intended to replace aging platforms and meet evolving military requirements for troop and equipment transport in contested environments. Its capabilities are crucial for strategic mobility, disaster relief, and special operations, aligning with the need for advanced, versatile aviation assets.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 6900 MAIN ST, STRATFORD, CT, 06615

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,664,752,025

Exercised Options: $2,664,752,025

Current Obligation: $2,657,312,746

Actual Outlays: $71,294,903

Subaward Activity

Number of Subawards: 2310

Total Subaward Amount: $1,242,429,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline